Comments on: Bucking the conventional wisdom on a fixed-rate mortgage http://www.canadiancapitalist.com/bucking-the-conventional-wisdom-on-a-fixed-rate-mortgage/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Renewing a Mortgage – Variable Rate or Fixed Rate? http://www.canadiancapitalist.com/bucking-the-conventional-wisdom-on-a-fixed-rate-mortgage/#comment-1328044 Renewing a Mortgage – Variable Rate or Fixed Rate? Fri, 30 Dec 2011 18:23:53 +0000 http://www.canadiancapitalist.com/?p=2014#comment-1328044 [...] Canadian Capitalist with Bucking the conventional wisdom on a fixed-rate mortgage [...] [...] Canadian Capitalist with Bucking the conventional wisdom on a fixed-rate mortgage [...]

]]> By: Ditech Home Loan http://www.canadiancapitalist.com/bucking-the-conventional-wisdom-on-a-fixed-rate-mortgage/#comment-398490 Ditech Home Loan Thu, 27 Jan 2011 19:22:19 +0000 http://www.canadiancapitalist.com/?p=2014#comment-398490 The are pros and cons for both loan types. Obviously the variable interest rate carried more risk. There is no right or wrong answer since every homeowner has a different financial background and a different tolerance for risk. The are pros and cons for both loan types. Obviously the variable interest rate carried more risk. There is no right or wrong answer since every homeowner has a different financial background and a different tolerance for risk.

]]> By: Interest Only Mortgage http://www.canadiancapitalist.com/bucking-the-conventional-wisdom-on-a-fixed-rate-mortgage/#comment-232859 Interest Only Mortgage Tue, 13 Jul 2010 19:30:47 +0000 http://www.canadiancapitalist.com/?p=2014#comment-232859 Compare has some thoughts on the fixed vs variable Interest Only Mortgage. thanks Compare has some thoughts on the fixed vs variable Interest Only Mortgage.
thanks

]]> By: spindle http://www.canadiancapitalist.com/bucking-the-conventional-wisdom-on-a-fixed-rate-mortgage/#comment-219370 spindle Tue, 11 May 2010 23:52:48 +0000 http://www.canadiancapitalist.com/?p=2014#comment-219370 okay here's my two cents worth folks im up for renewal and have just nagotiated a rate 5yr variable1.75 persent or if i want a five yr fixed at 4.49 still quite a gap between fixed and variable here i believe i have a little lee way here apparently i was only interesed in variable and five yr fixed but i made it absulutly apparent to them that when lock in from a variable i get the whosale discounted rate at that time and written into the contract i kinda believe this the way the market is heading as we head out of ressesion and the bank of canada is going to make there move i believe coming up in june and just to make this firm i do not believe the boc will raise rates in fast mode far from it will be slow process i don't care what the ecconmists are thinking we have to remember manufactering sector is reallt taking a hit on the high dollar and don't forget our niegbours to the south how dependent our canada is with them i believe it will be a slow process a lot of people heve put themselves in a debt load over these enormously low interest rates but i may be wrong i think a variable is the way to go if you want to work on that princibal at least should i say the say the short to medium term and betting that the bond markets stay put for the short to medium term -i have given enough interest to the banks maybe i can pay a little less at least fot the short to mediun term here i have not completly decided yet put i think im going variable although i wish my mtge was up a year ago that would have been just great congradulations to all that did . okay here’s my two cents worth folks im up for renewal and have just nagotiated a rate 5yr variable1.75 persent or if i want a five yr fixed at 4.49 still quite a gap between fixed and variable here i believe i have a little lee way here apparently i was only interesed in variable and five yr fixed but i made it absulutly apparent to them that when lock in from a variable i get the whosale discounted rate at that time and written into the contract i kinda believe this the way the market is heading as we head out of ressesion and the bank of canada is going to make there move i believe coming up in june and just to make this firm i do not believe the boc will raise rates in fast mode far from it will be slow process i don’t care what the ecconmists are thinking we have to remember manufactering sector is reallt taking a hit on the high dollar and don’t forget our niegbours to the south how dependent our canada is with them i believe it will be a slow process a lot of people heve put themselves in a debt load over these enormously low interest rates but i may be wrong i think a variable is the way to go if you want to work on that princibal at least should i say the say the short to medium term and betting that the bond markets stay put for the short to medium term -i have given enough interest to the banks maybe i can pay a little less at least fot the short to mediun term here i have not completly decided yet put i think im going variable although i wish my mtge was up a year ago that would have been just great congradulations to all that did .

]]> By: Assetologist http://www.canadiancapitalist.com/bucking-the-conventional-wisdom-on-a-fixed-rate-mortgage/#comment-215195 Assetologist Tue, 06 Apr 2010 17:11:57 +0000 http://www.canadiancapitalist.com/?p=2014#comment-215195 Risk Control: We should all make a holistic and comprehensive evaluation of our personal risk and reward. Examine your spouse, job, health, real estate, equities, bonds, etc If, for example, your investments are very conservative and your job quite secure than why not opt for a VMR in order to strike your appropriate risk/reward balance. My point is see the forest not just the trees. Risk Control:
We should all make a holistic and comprehensive evaluation of our personal risk and reward. Examine your spouse, job, health, real estate, equities, bonds, etc
If, for example, your investments are very conservative and your job quite secure than why not opt for a VMR in order to strike your appropriate risk/reward balance.
My point is see the forest not just the trees.

]]> By: Smart Money - Fail Math http://www.canadiancapitalist.com/bucking-the-conventional-wisdom-on-a-fixed-rate-mortgage/#comment-213393 Smart Money - Fail Math Thu, 18 Mar 2010 13:41:32 +0000 http://www.canadiancapitalist.com/?p=2014#comment-213393 My bank is currently offering Prime -.3% in March 2010 for a VRM. My question is at what level of discount is a VRM better than a FRM? or what % difference between the two is one more of an advantage than the other? and let's say there is a 2% difference does it mean that if the VRM rate only goes up 2% over the course I will be ahead of the game? My thinking is we are closely tied to the U.S. economy and if their rebound is slower ours will at also be slowed and inflation will be modest. Granted rates will go up soon but, how fast? how high? I believe fast is not possible given what the economy just endured. So the question remains if pay an accelerated VRM for the time being will my principal be lower at the end of my cycle opposed to the FRM? My bank is currently offering Prime -.3% in March 2010 for a VRM. My question is at what level of discount is a VRM better than a FRM? or what % difference between the two is one more of an advantage than the other? and let’s say there is a 2% difference does it mean that if the VRM rate only goes up 2% over the course I will be ahead of the game?

My thinking is we are closely tied to the U.S. economy and if their rebound is slower ours will at also be slowed and inflation will be modest. Granted rates will go up soon but, how fast? how high? I believe fast is not possible given what the economy just endured. So the question remains if pay an accelerated VRM for the time being will my principal be lower at the end of my cycle opposed to the FRM?

]]> By: smartcanadian http://www.canadiancapitalist.com/bucking-the-conventional-wisdom-on-a-fixed-rate-mortgage/#comment-211226 smartcanadian Thu, 18 Feb 2010 04:55:59 +0000 http://www.canadiancapitalist.com/?p=2014#comment-211226 As many have said here, it all depends on your financial situation and, more importantly, your state of mind when it comes to all matters financial. If you want to take risks with money management (smart money management with some risk taking might yield good results), then you would go with the variable rates. But if you just want to be able to know with certainty your mortgage amount, then go for the fixed rate. As many have said here, it all depends on your financial situation and, more importantly, your state of mind when it comes to all matters financial. If you want to take risks with money management (smart money management with some risk taking might yield good results), then you would go with the variable rates. But if you just want to be able to know with certainty your mortgage amount, then go for the fixed rate.

]]> By: Travel Insurance http://www.canadiancapitalist.com/bucking-the-conventional-wisdom-on-a-fixed-rate-mortgage/#comment-211003 Travel Insurance Mon, 15 Feb 2010 00:40:27 +0000 http://www.canadiancapitalist.com/?p=2014#comment-211003 As a first time buyer over 5 years ago, I also was aware of the stats between Variable being statisitcally lower than a fixed. I decided to play the numbers and took the variable. My rate was prime - 0.5% for the 5 yr term. For about 2 yrs, I was below the rate of the best fixed rate I was offerred at the time (4.99%). Then, for about a year and a half, I was probably paying 0.5% above my fixed offer. Then October, 2008 happened. So, not too long after I was back down to 2% or so. Luckily, when I renewed, the Prime +0.8% days had dwindled back to prime +.02 or 0.1, I forget. I am confident I will be in that 2% range for a year, maybe year and a half. The only thing that influenced, my decision, was could I handle the payment at 4-5% if it went up. As a first time buyer over 5 years ago, I also was aware of the stats between Variable being statisitcally lower than a fixed. I decided to play the numbers and took the variable. My rate was prime – 0.5% for the 5 yr term. For about 2 yrs, I was below the rate of the best fixed rate I was offerred at the time (4.99%). Then, for about a year and a half, I was probably paying 0.5% above my fixed offer. Then October, 2008 happened. So, not too long after I was back down to 2% or so. Luckily, when I renewed, the Prime +0.8% days had dwindled back to prime +.02 or 0.1, I forget. I am confident I will be in that 2% range for a year, maybe year and a half. The only thing that influenced, my decision, was could I handle the payment at 4-5% if it went up.

]]> By: Friday Links – Anniversary Edition - Canadian Finance Blog http://www.canadiancapitalist.com/bucking-the-conventional-wisdom-on-a-fixed-rate-mortgage/#comment-210345 Friday Links – Anniversary Edition - Canadian Finance Blog Fri, 05 Feb 2010 13:43:08 +0000 http://www.canadiancapitalist.com/?p=2014#comment-210345 [...] My favorite – Bucking the conventional wisdom on a fixed-rate mortgage [...] [...] My favorite – Bucking the conventional wisdom on a fixed-rate mortgage [...]

]]> By: Time to opt for a variable-rate mortgage again? | Canadian Capitalist http://www.canadiancapitalist.com/bucking-the-conventional-wisdom-on-a-fixed-rate-mortgage/#comment-200892 Time to opt for a variable-rate mortgage again? | Canadian Capitalist Mon, 28 Sep 2009 02:19:24 +0000 http://www.canadiancapitalist.com/?p=2014#comment-200892 [...] rate mortgage (FRM) and a variable-rate mortgage (VRM) was unusually low and it may be better to buck the conventional wisdom and opt for a fixed-rate mortgage. Not anymore. Fixed-rates have been relatively steady — according to Invis, a mortgage [...] [...] rate mortgage (FRM) and a variable-rate mortgage (VRM) was unusually low and it may be better to buck the conventional wisdom and opt for a fixed-rate mortgage. Not anymore. Fixed-rates have been relatively steady — according to Invis, a mortgage [...]

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